Abstract A benefit—cost analysis of trypanosomiasis control programs for an area of 1500 km2 in southwest Ethiopia, for a project span of 15 years at a discount rate of 10%, was conducted to determine cost effective and benefit maximizing alternatives. The trypanosomiasis control scenarios considered were: (a) reduction of tsetse flies by use of insecticides sprayed from knapsacks, (b) game reduction, (c) no control program. Information on costs was obtained from existing data. A Leslie type model was utilized to simulate the cattle population dynamics in southwest Ethiopia for trypanosomiasis controlled versus uncontrolled situations. From these results costs and benefits of control were quantified. The benefit—cost analysis using net present values (NPV) and benefit/cost (B/C) ratio as decision criteria of project feasibility and efficiency, indicated that insecticide application was preferable to game reduction. Estimates of present value costs were E$ 630.17 per km2 per year while the present value benefits were E$ 720.24 per km2 per year. The B/C ratio was 1.14 and net present value of the project was E$ 2.03 million. Sensitivity analysis and implications of the results are discussed.
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